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Pentair plc PNR posted adjusted earnings per share (EPS) of $1.11 for the first quarter of 2025, which beat the Zacks Consensus Estimate of $1.01 by a margin of 10%. The bottom line also topped its guidance of $1.00-$1.02 and marked an 18% improvement from the prior-year quarter.
Including one-time items, the EPS was 93 cents compared with the prior-year quarter’s 80 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Pentair Delivers Margin Expansion Despite Lower Sales
Net sales declined 1% year over year to $1.01 billion. The top line surpassed the Zacks Consensus Estimate of $984 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.
The cost of sales declined 3% year over year to $607 million. The gross profit was $403 million, up 3% from the prior-year quarter. The gross margin was 39.9% compared with the year-ago quarter’s 38.4%.
SG&A expenses totaled $177 million, down 5% from the prior-year quarter’s $185 million. Research and development expenses declined 2% year over year to $24 million.
The operating income, including one-time items, was $203 million, up 12% from the year-ago quarter. Operating margin was 20.1% compared with 17.8% in the year-ago quarter.
The adjusted segmental operating income increased 12% year over year to $242.5 million. The adjusted segmental margin was 24%, a 260-basis point expansion from the year-ago quarter.
PNR’s Segment Performances in Q1
Net sales in the Flow segment totaled $368 million, down 4.3% from the prior-year quarter. Our estimate for the segment’s net sales was $360 million. Adjusted operating earnings for the segment rose 8% year over year to $84 million. Our estimate for the segment’s operating profit was $79 million.
Net sales in the Water Solutions segment were down 5.5% year over year to $258 million. The segment’s earnings were $61 million compared with $56 million in the year-ago quarter. Both the sales and earnings figures met our estimates.
Net sales in the Pool segment totaled $384 million, up 7% year over year. Our estimate for the segment’s net sales was $365 million. Operating earnings for the segment grew 13.7% year over year to $126 million. Our estimate for the segment’s operating income was $113.7 million.
Pentair’s Cash Flow & Balance Sheet Updates at Q1-End
Pentair had cash and cash equivalents of around $141 million at the end of the first quarter of 2025 compared with $119 million at 2024-end. Net cash generated from operating activities was $39 million in the first quarter of 2025 compared with $107 million in the prior-year quarter.
The company had a long-term debt of $1.84 billion as of March 31, 2025, up from $1.64 billion as of Dec. 31, 2024.